Documentary Stamp Tax

Documentary Stamp Tax is a tax imposed on certain legal documents, such as deeds, mortgages, and sales contracts. It is typically paid when these documents are executed or recorded, and the tax rate can vary by jurisdiction. The purpose of the tax is to generate revenue for the government, and it often applies to transactions involving real estate. The amount owed is usually based on the value of the property or the amount of the transaction. Both buyers and sellers should be aware of this tax, as it can impact the overall cost of a transaction.